Temecula Valley Bancorp Announces Record Earnings.TEMECULA, Calif. -- Temecula Valley Bancorp Inc.'s (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TMCV) announces record earnings for the quarter ending March 31, 2006. "We are very pleased with the results," stated Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and H. Wacknitz, Chairman/President/CEO. "Our first quarter profits were $3.98 million, a 33% increase from the $3 million earned in the same period last year. This unprecedented level of profitability was achieved despite the new requirement to expense stock options." The net interest income for the quarter ending March 31, 2006 was $13.37 million, a 48% increase from the $9.03 million earned in the same period last year, primarily due to the increase in loans outstanding and improvement in net interest margin. Return on average assets was 1.82% and return on average equity was 26.72% for the quarter ending March 31, 2006. This level of performance places the bank among the top performers in the country. Total assets were $924.76 million at March 31, 2006, a 41% increase from $656.86 million at March 31, 2005. For the same periods, loans increased 36%. The increase in loans was due to continuing strong lending activity. The allowance for loan loss increased by 31% from $7.05 million at March 31, 2005 to $9.20 million at March 31, 2006. Net charge-offs were $155 thousand for the first three months of 2005 and for 2006. Non-accrual loans (net of SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government guarantees) were down 70% from the $3.31 million at March 31, 2005, to $1.01 million at March 31, 2006. Other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (net of SBA guarantees) was $69 thousand at March 31, 2005 compared to $318 thousand at March 31, 2006. Deposits increased 42%, from $582.87 million at March 31, 2005 to $826.40 million at March 31, 2006. The continued deposit growth of existing branches, the various CD promotions and the new branch in Carlsbad Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. has fueled the deposit growth. Deposit growth is expected to be sufficient to fund future loan growth. Shareholder equity increased 36% from $46.05 million at March 31, 2005 to $62.82 million at March 31, 2006 due primarily to net income and the exercise of stock options. The capital ratios remain strong at March 31, 2006, with the tier one leverage ratio of 9.34%, the tier one risk based ratio of 9.28% and the total risk based capital ratio of 11.14%, all easily above the minimum to qualify as "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. ." Temecula Valley Bank (the Bank), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Temecula Valley Bancorp Inc., has eight full service branches located in Temecula, Murrieta, Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. , Fallbrook, Escondido Escondido (ĕskəndē`dō), city (1990 pop. 108,635), San Diego co., S Calif.; inc. 1888. Located in a grain-, citrus-fruit-, and grape-growing valley, Escondido produces cereal products and has fruit-packing houses and one of the , Rancho ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. Bernardo Bernardo enraged that member of a rival street-gang is making advances to his sister. [Am. Musical: West Side Story] See : Anger , El Cajon El Cajon (ĕl kähōn`), city (1990 pop. 88,693), San Diego co., S Calif.; inc. 1912. Electronic equipment, aircraft parts, irrigation equipment, furniture, and men's suits are among its manufactures. and Carlsbad, California Carlsbad is a coastal resort-town in northern San Diego County, California. According to the state Department of Finance, the city had a total population of 90,271 in 2003. . The Bank also operates a number of regional real estate loan production centers in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . As a nationally authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: preferred SBA lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. , the Bank has funded over a billion dollars in SBA loans in 33 states across the nation in the last five years. Temecula Valley Bank was established in 1996 and Temecula Valley Bancorp was established in June June: see month. 2002. Temecula Valley Bancorp's common stock is listed on The National NASDAQ Market and trades under the symbol TMCV. The Bank's website is at www.temvalbank.com. Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. government, and general economic conditions. Additional information on these and other factors that could affect financial results are included in its Securities and Exchange Commission filings.
TEMECULA VALLEY BANCORP INC.
FINANCIAL DATA
MARCH 2006
(UNAUDITED)
(all amounts in whole dollars except share and per share information)
Mar. 31, Mar. 31, Increase Increase
2006 2005 (Decrease) (Decrease)
------------ ------------ ------------ ----------
ASSETS
Cash and due from
banks 13,868,353 9,841,055 4,027,298 41%
Federal funds sold 51,600,000 5,700,000 45,900,000 805%
Securities - held
to maturity 0 0 0 0%
Loans 799,099,292 587,152,507 211,946,785 36%
Less allowance for
loan losses (9,197,804) (7,046,382) 2,151,422 31%
------------ ------------ ------------
Loans, net 789,901,488 580,106,125 209,795,363 36%
Federal Reserve &
Home Loan Bank
stock, at cost 3,120,200 2,680,000 440,200 16%
Other real estate
owned, net 727,500 275,000 452,500 165%
Bank premises and
equipment, net 5,301,864 4,742,609 559,255 12%
SBA-loan servicing
I/O strip
receivable 20,200,808 24,020,948 (3,820,140) (16%)
SBA-loan servicing
asset 8,257,381 7,871,752 385,629 5%
Cash surrender
value life
insurance 17,748,233 9,680,824 8,067,409 83%
Other Assets 14,029,800 11,942,032 2,087,768 17%
------------ ------------ ------------
924,755,627 656,860,345 267,895,282 41%
============ ============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Demand deposits 159,969,726 144,502,854 15,466,872 11%
Interest bearing
deposits 666,429,061 438,364,031 228,065,030 52%
------------ ------------ ------------
Total deposits 826,398,787 582,866,885 243,531,902 42%
Junior subordinated
debt 28,868,000 20,620,000 8,248,000 40%
Other liabilities 6,666,704 7,319,372 (652,668) (9%)
------------ ------------ ------------
Total liabilities 861,933,491 610,806,257 251,127,234 41%
Stockholders'
equity 62,822,056 46,054,088 16,767,968 36%
------------ ------------ ------------
924,755,547 656,860,345 267,895,202 41%
============ ============ ============
3 Mos Ended 3 Mos Ended Increase Increase
Mar. 31, Mar. 31,
2006 2005 (Decrease) (Decrease)
------------ ------------ ------------ ----------
Interest income 19,420,463 11,410,544 8,009,919 70%
Interest expense 6,052,422 2,378,308 3,674,114 154%
------------ ------------ ------------
Net interest income 13,368,041 9,032,236 4,335,805 48%
Provision for loan
losses 314,000 838,800 (524,800) (63%)
Other income 4,940,642 5,783,496 (842,854) (15%)
Other expense 11,077,396 8,836,692 2,240,704 25%
------------ ------------ ------------
Earnings before
income taxes 6,917,287 5,140,240 1,777,047 35%
Income taxes 2,936,761 2,138,560 798,201 37%
------------ ------------ ------------
Net earnings 3,980,526 3,001,680 978,846 33%
============ ============ ============
Actual common
shares outstanding
at end of period 8,977,771 8,812,283
Average common
shares outstanding 8,954,686 8,787,593
Average common
shares &
equivalents
outstanding 9,648,850 9,511,505
Basic earnings per
share 0.44 0.34
Diluted earnings
per share 0.41 0.32
Return on average
assets
(annualized) 1.82% 1.91%
Return on average
equity
(annualized) 26.72% 27.37%
Efficiency ratio 60.50% 59.64%
3/31/2006 3/31/2005
------------ ------------
Tier 1 leverage
capital ratio 9.34% 9.47%
Tier 1 risk-based
capital ratio 9.28% 9.22%
Total risk-based
capital ratio 11.14% 11.15%
Allowance for loan
losses as a % of
total loans 1.15% 1.20%
Gross nonperforming
assets as a % of
total assets 0.75% 1.66%
Net nonperforming
assets as a % of
total assets 0.14% 0.51%
Net charge offs
(annualized) as a
% of total loans 0.08% 0.11%
Loan to deposit
ratio 96.70% 100.74%
Book value per
share 7.00 5.23
PAST DUE AND NON-ACCRUAL LOANS
----------------------------------- ----------------------------------
Gross Government Net
Balance Guaranty Balance
----------------------------------
March 31, 2006
-----------------------------------
30-89 days past due 1,577,002 (848,351) 728,651
=========== =========== ==========
90+ days past due and accruing 0 0 0
Non-accrual 6,165,211 (5,157,240) 1,007,971
Other real estate owned (REO) 727,500 (409,424) 318,076
----------- ----------- ----------
Total non-performing assets 6,892,711 (5,566,664) 1,326,047
=========== =========== ==========
March 31, 2005
-----------------------------------
30-89 days past due 438,642 0 438,642
=========== =========== ==========
90+ days past due and accruing 0 0 0
Non-accrual 10,655,283 (7,350,019) 3,305,264
Other real estate owned (REO) 275,000 (206,250) 68,750
----------- ----------- ----------
Total non-performing assets 10,930,283 (7,556,269) 3,374,014
=========== =========== ==========
NET LOAN CHARGEOFFS
-----------------------------------
3 Mos Ended 3 Mos Ended
03/31/2006 03/31/2005
----------- -----------
Charge offs 156,191 259,688
Recoveries (841) (104,736)
----------- -----------
Net Chargeoffs 155,350 154,952
=========== ===========
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